They build em up only to knock em down. The backlash to Second Life is breaking through into the nationals. The consensus here is that once you're in there Second Life resembles a post-apocalyptic wasteland rather than a shiny bustling virtual world. And our French colleagues confirm its flopped over there.
But like many other things in technology its death may be exaggerated. Look at how the good old computer terminal/mainframe server model is being reinvented into the green computing thin client wonder device.
Expect to see Second Life technology concepts popping up in other guises.